Thread by @Subli_Defi

1/13 Have you ever heard a world where #DeFi rewards are automatically harvested & reinvested? Welcome in the #YieldOptimizer World. Here is a 🧵why they are one of the first door to open for newcomers in #DeFi 👇
Concrete example on @optimismPBC with @beethoven_x & @beefyfinance

2/13 When you deposit into a Liquidity Pool, you receive token(s) reward based on the #APR of this pool. APR stands for: Annual Percentage Rate. On @beethoven_x , this pool is made up of 8 #tokens, with an APR of 139%
$OP $LYRA $USDC $SNX $BEETS $sUSD $PERP $BAL

3/13 As you may know @beethoven_x is a friendly fork of @BalancerLabs coming from #Fantom who deployed their platform on #Optimism. Reward of this pool are split:
- 37% of swap fees => your LP token will increase in quantity
- 102% liquidity mining => Reward received in $BAL

4/13 So let's say you want to take your $BAL and re-invest it in the LP, you have to:
1-Harvest reward
2-Deposit $BAL into the pool (@beethoven_x will take care to split your deposit into an equal amount of the 8 tokens)
3-Stake your LP token
=> 3 operations each time = 3xfees

5/13 Mind that other DEXes can either offer multiple token rewards, or don't not have this "ZAP" function that distributes automatically your deposit into the different tokens of the LP. So 3 operations can turn into 10 transactions 💵💵💵

6/13 If you'd like to reinvest every week ♻️, that makes 10*52 = 520 transactions 😱. So either you don't have time, or the transactions fees will exceed your rewards. Fortunately, specific protocol exists to help you and do the work for you:

7/13 @beefyfinance is one of them. It's called a Yield Optimizer. It will harvest and autocompound the reward for you, transforming APR into APY = Annual Percentage Yield. If you want to know the difference between APR and APY, please check this site: aprtoapy.com

8/13 Once you deposited into @BeethovenX Pool "Optimistic 8-Track", do not #stake your LP token and go to app.beefy.com, look for the same #vault, and deposit your LP token on Beefy.

9/13 So how much APY does 137% APR makes? See the picture! OMG 🥳🥳, so you can double your yield. And instead of multiple transaction fees in case of manuel harvesting, #Beefy takes 4.5% of performance fee and 0.1% on withdrawal, but does everything for you.

10/13 But what i like the most on Beefy V2 is
FIRST the APY history, as we all know about yield volatily in Defi.

11/13 SECOND then a small description about the strategy as well as a safety score on the vault

12/13 IMO it's a wonderfull entry door for newcomers who starts investing. As #DeFi on #Optimism grows, other protocols will join, and be sure i'll cover them to provide deep insights.
As of today, #beefy proposed only LP Token from @beethoven_x but that will change for sure.

13/13 If you liked this thread please feel free to share, i'm sure we have all a friend who have already asked you this kind of question.

https://twitter.com/Subli_Defi/status/1542164259853025280?s=20&t=BEXHCk4bXgLfj_fp2OlNHg

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